Sugar Prices Rise Up to ₹18/kg in 18 States; Centre Cites Crop Damage, Festive Demand
Sugar prices have risen by ₹10 to ₹18 per kg across around 18 States and Union Territories over the past year. On August 21, 2026, Odisha recorded the highest retail price at ₹64.72 per kg, which was ₹17.80 higher than on the same date in 2025. Consumers in Assam, Delhi, Goa, Kerala, Madhya Pradesh, Meghalaya, Punjab, Tripura and West Bengal were also paying over ₹60 per kg on that day.
The national average price of sugar was ₹58.23 per kg on August 21. According to the Union Ministry of Consumer Affairs, Food & Public Distribution, the price rose to ₹55.70 per kg by August 20, from ₹48.18 per kg on July 20. On a month-on-month basis, Madhya Pradesh saw the sharpest climb at ₹15.70 per kg, followed by Punjab at ₹14.67. Week-on-week, Madhya Pradesh topped with an increase of ₹11.82, while Odisha recorded a rise of ₹10.67.
The Ministry attributed the price rise to a combination of factors, including lower-than-expected domestic production, increased demand ahead of the festive season, weather-related damage to the sugarcane crop, tightening global sugar supplies, and speculation and hoarding by some sections of the industry. It said the government is closely monitoring the situation and has taken measures to ensure adequate supply and price stability.
Addressing claims linking ethanol production to the price rise, the Ministry said such assertions are incorrect. It noted that the share of sugar diverted for ethanol has declined from approximately 12% in 2022-23 to around 9% in 2025-26, and that nearly three-fourths of the ethanol produced in the country now comes from grains, particularly maize.
Experts point to a combination of production shortfall and higher input costs. Lal Singh Gangwar, Principal Scientist at the Indian Institute of Sugarcane Research (ICAR), Lucknow, said a 10% increase in retail sugar prices around the festive season is typically normal. He added that input costs for farmers and sugar mills have risen due to higher diesel and fertiliser prices, partly because of the conflict in West Asia. He also dismissed the ethanol linkage, noting that the government has capped the use of sugarcane juice for ethanol production.
Sugar production in the current season is now estimated at around 306 lakh metric tonnes (LMT), compared with the initial estimate of 343 LMT by sugarcane-growing States. The government has imposed a stock limit of 400 tonnes on sugar dealers from August 1 to November 30. From September 1, bulk consumers will not be permitted to hold stocks exceeding 15 days of consumption. The government has also authorised duty-free import of 10 LMT of raw sugar to boost domestic availability.
The Ministry also observed that sugar prices are rising globally, and that diverting surplus sugar to ethanol has improved the financial health of sugar mills. Nevertheless, it reiterated that the government’s priority is to ensure stable prices for consumers.
